Scotland’s hospitality industry is being held back by poor broadband and high postal delivery charges, according to new research published today by Citizens Advice Scotland (CAS).

The new report, entitled ‘Delivering for Business: Scottish SMEs use of postal services’ highlighted other significant issues for operators. One in five small and medium enterprises (SMEs) contacted reported they ‘could not function’ without the postal service, while a further 72% said the Post Office is very or fairly important to their business. However, nearly a quarter have to pay additional surcharges due to their location and 21% experience delivery delays for the same reason.

CAS Chief Executive Derek Mitchell said: ‘The figures for hospitality contrast with that of 32% across all sectors of the economy. The success of small businesses is key to economic growth, particularly in rural areas where hospitality, agriculture and construction businesses contribute significantly to the financial health of the local community. In order toflourish, more remote areas need good digital connectivity and an effective postal system. One third of Scotland’s SMEs have told us that broadband is poor or ‘variable’ in their area; with this figure rising to 45% in the hospitality sector. This simply isn’t good enough if we want all regions of Scotland to prosper.

Scotland needs postal and broadband services that are reliable, efficient and affordable and with that in mind we will be sharing this data with the UK and Scottish governments and with postal service providers to inform future policy making.’